Understanding "Cover the Fees" on Online Church Donation Platforms

Churches are getting on board with online giving because it's super easy for everyone to chip in. But, just like with anything online, there are fees that cut into every donation, reducing the total amount given to the Church. 

This is where "Cover the Fees" comes into play. Cover the Fees allows churches to give their donors the opportunity to fully cover the cost of giving to the Church. In other words, your church can receive the full intended amount – whether that’s $10, $100, or $1,000 – without paying for transaction fees!

What Does "Cover the Fees" Mean?

"Cover the Fees" is an option that allows donors to increase their donation by a small percentage to cover the transaction fees associated with their online donation. This means that if a church member decides to donate $100, they have the option to give an additional amount (usually around 2-3% more) to offset the processing fee. As a result, the church receives the intended full donation amount.

What are Processing Fees?

Processing fees (or transaction fees) are charges that businesses (or organizations like a church or non-profit) must pay every time a customer (or donor) uses an electronic payment to purchase a product or service. 

These fees are typically a percentage of the purchase price combined with a flat rate per transaction, and they are collected by the payment processors, which could include credit card companies, banks, and online payment gateways. 

For non-profits and religious organizations like churches, these fees can represent a significant cost, as they can diminish the total amount of donations received. Understanding these fees is crucial for both donors and recipients to ensure the maximum intended funds are available for use in their intended purpose.

4 Benefits of “Cover the Fees” for the Church

1. Maximized Donations: By offering a "Cover the Fees" option, churches ensure that they receive the full amount intended by the donor, which can significantly add up over time.
2. Transparency in Giving: It allows for transparency, letting donors know exactly where their money is going and how much the church will receive.
3. Enhanced Stewardship: It encourages stewardship among church members, fostering a culture of generosity and responsibility for the operational costs of their church.
4. Budget Predictability: Processing fees can be unpredictable, but with "Cover the Fees," churches can better predict their budgets and financial planning.

Getting Started with Tithely

Tithely is a popular choice for online giving for churches, offering a suite of tools designed to engage with the congregation and manage church funds efficiently. Here’s how to get started:

1. Sign Up with Tithely: The first step is to create an account with Tithely. It's a straightforward process that involves providing your church's details and setting up a bank account to receive donations.
2. Enable "Cover the Fees": Once your account is set up, you can enable the "Cover the Fees" feature from your Tithely dashboard settings. It allows you to present this option to your donors during the giving process.
3. Educate Your Congregation: Educate your members about the benefits of "Cover the Fees" through newsletters, sermons, and information sessions. Transparency is key, so explain how processing fees work and how covering them can benefit the church.
4. Track and Report: Utilize Tithely’s reporting features to track the impact of "Cover the Fees" on your church’s finances. You can then share these reports with your congregation to show the difference it makes.
5. Support and Training: Tithely offers support and training for churches to get the most out of its platform. Make use of these resources to ensure a smooth operation.

Over to You

"Cover the Fees" is a small change that can have a big impact on a church's financial health. It's a testament to how modern technology can be harmoniously woven into the fabric of church stewardship. 

As churches continue to navigate the challenges of the digital world, features like "Cover the Fees" on platforms like Tithely demonstrate a path forward in aligning faith with the practicalities of financial management.